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Value Co-creation in Sharing Economy: Indian Experience

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Abstract

The advanced peer–peer business models, supported by new digital platforms, engage customers to collaboratively make use of resources. Sharing economy is one of the outcomes of the technology and customer-driven business model. It is not only adding value to the firm but to all the multiple stakeholders indulged in the business operations. Understanding this multifaceted value-driven approach, the current study delves deeper in understanding the concept of shared economy in Indian context. Theoretically, it adds the literature on the sharing economy by concentrating how value co-creation (VCC) is generated in case of shared economy. Additionally, the study suggests and tests a conceptual framework for VCC for the sharing economy, which offers an empirical support in concerned topics. Lastly, the study has managerial implications for the budding entrepreneurs in the sharing economy to building and value co-creation in service industry.

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Author information

Authors and Affiliations

  1. NMIMS, Navi Mumbai Campus, Navi Mumbai, India

    Surabhi Koul

  2. Jaipuria Institute of Management, Indore, India

    Sahil Singh Jasrotia

  3. Shri Mata Vaishno Devi University, Katra, India

    Hari Govind Mishra

Authors
  1. Surabhi Koul
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  2. Sahil Singh Jasrotia
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  3. Hari Govind Mishra
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Corresponding author

Correspondence to Sahil Singh Jasrotia.

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Appendices

Appendix 1

Comparison of company-customer interaction in traditional vs. co-creation firms.

 

Traditional exchange

Value co-creation

Goal of interaction

Extraction of economic value

Co-creation of value through compelling experiences as well as extraction of economic value

Locus of interaction

Once at the end of the value chain

Repeatedly anywhere across the value network

Company-customer relationship

Transaction based

Based on the quality of the interactions and transactions focused on co-creation experiences

View of choice

Variety of products and services

Experiences based on interactions across multiple channels, options, transactions and the price-experience relationship

Pattern of interaction

Passive, firm initiated, one-to-one

Active, initiated by either firm or customer, one-to-one or one-to-many

Focus of quality

Quality of products, services and processes

Quality of customer-company interactions and co-creation experiences

  1. Source: Prahalad & Ramaswamy (2004)

Appendix 2

VIF values indicating collinearity among constructs.

Items

VIF

ap1

2.459

ap2

2.871

ap3

3.651

ap4

1.229

br1

2.500

br2

2.955

br3

2.326

mb1

2.029

mb2

1.920

mb3

1.877

ra1

2.673

ra2

2.568

ra3

1.929

rb1

1.556

rb2

1.164

rb3

1.327

rl1

2.450

rl2

1.738

rl3

2.287

se1

1.184

se2

1.618

se3

1.842

sr1

1.585

sr2

1.428

sr3

1.221

sr4

1.264

vc1

1.004

vc2

1.961

vc3

2.666

vc4

1.318

vc5

2.045

vm1

2.576

vm2

2.286

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Koul, S., Jasrotia, S.S. & Mishra, H.G. Value Co-creation in Sharing Economy: Indian Experience. J Knowl Econ 13, 387–405 (2022). https://doi.org/10.1007/s13132-021-00741-w

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